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ESGU - ETF AI Analysis

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ESGU

iShares ESG Aware MSCI USA ETF (ESGU)

Rating:74Outperform
Price Target:
ESGU, the iShares ESG Aware MSCI USA ETF, has a solid overall rating driven mainly by large, high-quality tech leaders like Alphabet, Microsoft, Apple, and Nvidia, which all show strong financial performance and promising long-term growth in areas like AI, cloud, and services. The fund’s rating is held back somewhat by holdings such as Tesla and Eli Lilly, where high valuations, leverage, or cash flow challenges introduce more uncertainty. A key risk is the ETF’s heavy tilt toward a handful of big technology and growth-oriented names, which can increase sensitivity to shifts in tech sentiment and valuation.
Positive Factors
Large, Established U.S. Companies
The ETF is built around many of the biggest and most established U.S. stocks, which can provide a more stable core for a portfolio.
Strong Recent Performance
The fund has shown positive returns over the past month, three months, and year to date, helped by several strong-performing technology and communication holdings.
Low Expense Ratio
The ETF charges a relatively low fee, which helps investors keep more of their returns over time.
Negative Factors
Heavy Technology Concentration
With a large portion of the fund in technology stocks, the ETF is sensitive to downturns in that single sector.
Top Holdings Drive Much of the Risk
A small group of mega-cap stocks makes up a significant share of the portfolio, so weakness in these names can weigh heavily on overall performance.
Limited International Diversification
The ETF is almost entirely invested in U.S. companies, offering very little exposure to markets outside the United States.

ESGU vs. SPDR S&P 500 ETF (SPY)

ESGU Summary

ESGU is an ETF that follows the MSCI USA Extended ESG Focus Index, which tracks U.S. stocks while favoring companies that score better on environmental, social, and governance (ESG) practices. It holds many well-known names like Apple and Nvidia, and covers a wide mix of sectors, with a big tilt toward technology. Someone might invest in ESGU to get broad exposure to the U.S. stock market while trying to support more sustainable and responsible businesses. A key risk is that it is heavily invested in U.S. stocks and tech, so its value can rise and fall sharply with that part of the market.
How much will it cost me?The iShares ESG Aware MSCI USA ETF (ESGU) has an expense ratio of 0.15%, meaning you’ll pay $1.50 per year for every $1,000 invested. This is lower than average because it’s passively managed, tracking an index rather than relying on active stock picking.
What would affect this ETF?The ESGU ETF, with its strong focus on technology and ESG principles, could benefit from continued innovation in tech and increasing investor demand for sustainable investments. However, it may face challenges from regulatory changes affecting ESG criteria or economic slowdowns impacting the U.S. equity market, particularly in sectors like technology and consumer cyclical. Its reliance on top holdings like Nvidia, Apple, and Microsoft also makes it sensitive to performance fluctuations in these companies.

ESGU Top 10 Holdings

ESGU is riding a tech-heavy wave, with Nvidia, Apple, and Microsoft sitting in the driver’s seat alongside Alphabet and Amazon. The fund leans hard into U.S. mega-cap growth, especially AI and cloud themes, where Nvidia and Broadcom have been rising stars and giving the ETF much of its recent spark. Amazon and Alphabet are also pulling their weight with steady to rising performance. On the flip side, Microsoft’s recent softness and Tesla’s lagging stretch have taken a bit of shine off, but broad U.S. exposure helps smooth the bumps.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia7.71%$1.28B$5.05T77.54%
76
Outperform
Apple6.40%$1.06B$4.22T46.50%
79
Outperform
Alphabet Class C5.02%$832.12M$4.81T158.60%
82
Outperform
Microsoft4.59%$759.85M$3.08T-4.47%
79
Outperform
Amazon4.05%$670.97M$2.96T45.72%
71
Outperform
Broadcom3.02%$500.50M$2.01T107.72%
76
Outperform
Meta Platforms1.98%$327.60M$1.56T2.69%
76
Outperform
Tesla1.76%$291.45M$1.50T44.35%
73
Outperform
Alphabet Class A1.42%$234.66M$4.81T162.94%
85
Outperform
JPMorgan Chase1.27%$210.61M$843.78B26.27%
72
Outperform

ESGU Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
148.30
Positive
100DMA
148.87
Positive
200DMA
146.11
Positive
Market Momentum
MACD
3.05
Negative
RSI
76.01
Negative
STOCH
88.80
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ESGU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 153.93, equal to the 50-day MA of 148.30, and equal to the 200-day MA of 146.11, indicating a bullish trend. The MACD of 3.05 indicates Negative momentum. The RSI at 76.01 is Negative, neither overbought nor oversold. The STOCH value of 88.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESGU.

ESGU Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$16.71B0.15%
74
Outperform
$626.39B0.03%
72
Outperform
$105.66B0.04%
72
Outperform
$88.79B0.03%
73
Outperform
$49.73B0.15%
75
Outperform
$44.61B0.17%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESGU
iShares ESG Aware MSCI USA ETF
159.88
37.89
31.06%
VTI
Vanguard Total Stock Market ETF
VIG
Vanguard Dividend Appreciation ETF
ITOT
iShares Core S&P Total U.S. Stock Market ETF
QUAL
iShares MSCI USA Quality Factor ETF
DFAC
Dimensional U.S. Core Equity 2 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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